Megachem Limited Annual Report 2015 100 Notes to the Financial Statements 31 December 2015 12. Investments in subsidiaries Company 2015 2014 $ $ Movements during the year at cost: Balance at beginning of year 5,019,751 4,484,251 Acquisitions 420,018 800,000 Less : allowance for impairment – (264,500) Balance at end of year 5,439,769 5,019,751 Net book value of subsidiaries 22,905,375 22,533,630 Total cost comprising: Unquoted equity shares at cost 6,500,579 6,080,561 Allowance for impairment (1,060,810) (1,060,810) Total at cost 5,439,769 5,019,751 The above is after the following allowance for impairment: Company 2015 2014 $ $ Balance at beginning of year 1,060,810 796,310 Impairment loss charge to profit or loss – 264,500 Balance at end of year 1,060,810 1,060,810 The impairment loss recorded for the reporting year 2014 relates to subsidiary MG Chemicals (Australia) Pty Ltd. The lower than expected performance of this subsidiary was considered sufficient evidence to trigger the impairment test. The impairment test resulted in the recognition of a loss. Details of the subsidiaries are as follows: Name of subsidiary, principal activities, country of incorporation and place of operations Equity holding 2015 2014 % % Held by the Company C.N. Chemicals Sdn. Bhd. (b) Trading in industrial chemicals Malaysia 100 100 Megachem Manufacturing Pte Ltd (a) Blending of chemicals and chemical-related products Singapore 100 100
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